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Street set to bounce as Brexit sell-off wanes

U.S. stock index futures indicated a higher start to Wall Street trade on Tuesday as markets in Europe rebounded after the two-day sharp selloff.

The pan-European STOXX 600 index traded 2.4 percent higher on Tuesday, with the U.K.'s benchmark, internationally focused FTSE 100 up 2.5 percent.

Dow futures held about 200 points higher, while S&P and Nasdaq futures gained 22 points and 48 points, respectively.

Gains on Tuesday would come after a record 2-day global market cap loss of $3.0 trillion, according to Howard Silverblatt of S&P Dow Jones Indices.

Symbol
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Price
 
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FTSE
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DAX
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CAC
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IBEX 35
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"Markets are bouncing, and can bounce further but the clouds on the horizon are dark, and they're real," Kit Juckes, strategist at Societe Generale, said in a note on Tuesday.

"There's a pattern for Monday mornings to extend moves of the previous week before Tuesday sees everyone take stock," he added.

The dollar index, which tracks the greenback against a basket of major currencies, declined early on Tuesday, after four days of gains. Similarly, U.S. Treasury bond yields rose and gold traded lower, as the surge in "safe-haven" trades that followed the U.K.'s "Brexit" vote waned.

In economic news, the final revision on first-quarter U.S. GDP came in at 1.1 percent versus the prior read of 0.8 percent.

The S&P/Case-Shiller 20-City Composite Index rose 5.4 percent year-over-year in April.

Other data due for release include consumer confidence.

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Carnival will report earnings early in the day and Nike will report after the markets close.

Despite the rebound in markets, the fallout from the U.K.'s surprise vote to leave the European Union (EU) last week continues. On Monday, the U.K. lost its final triple-A ratings, with Standard & Poor's and Fitch Ratings both announcing downgrades. A two-day EU summit will kick off on Tuesday.

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